Cube Infrastructure has hit a milestone in its efforts to raise a second vehicle, holding a €358.5 million first close on the fund after seven months on the road.
The Luxembourg-based firm is now close to a third of the way towards reaching its €1.2 billion target for Fund II, which was launched in January after Cube completed its spinout from French banking group Natixis. The firm is now owned by its management.
Fund II is backed by the European Investment Bank, which committed €100 million to Cube’s “innovative” offering in virtue of its support of small and medium transport, energy and telecoms operators.
The vehicle aims to generate recurrent yield and capital gains by targeting brownfield assets through a “buy, grow and hold” strategy. It will focus on district heating, gas distribution, energy efficiency, fibre optic and public transport.
Infrastructure Investor had previously reported that Cube would seek to hold a first close before the summer.
Cube’s maiden fund reached its final close on €1.08 billion in 2010, garnering capital from a total of 23 limited partners. In addition to the EIB, Cube II is backed by European institutions, notably French and German LPs, as well as North American investors, including some from Canada.
The EIB invested in the fund under the Juncker plan, which the European Commission yesterday pledged to grow to €630 billion by 2022 from its initial target of €315 billion by 2018.